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UPS Report - May 2000



Report on United Parcel Service (UPS)
  May 21, 2000
  TO:  HPD Investment Group
  FR:  Nancy Montague
  For  May meeting

  1. (market price/share as of close of market, 5/19/00 - $61 7/8)
  Shares owned: 32
Market Value   $1980                  [purchased March 27]
  Cost basis:    [ original price 63  ea] $2024 + $8 commission = $2032 =
  $63.5 each
  Percent loss: - 2.56%


  2. Research - 1 Strong Buy; 9 moderate buy   5 Hold    (improved from last
month)


  3. PRESS

ATLANTA--(BUSINESS WIRE)--May 18, 2000--The Board of Directors of United
Parcel Service, Inc. (NYSE: UPS - news), at its regularly scheduled meeting,
today declared a quarterly cash dividend of 17 cents per share on all
outstanding Class A and Class B shares.
The dividend is payable on June 9, 2000, to shareowners of record on May 30,
2000.
The UPS Board declared the dividend after reviewing the company's
performance during the first quarter, a period of strong volume growth and
record revenue and net income.

 May 5, 2000 6:00:28 PM ET
 LONDON (CBS.MW) -- On the heels of feisty cargo hauler DHL Ltd., United
Parcel Service executives in London are gearing up for a European blitz.
"This is the fastest growing part of our worldwide export business,"
executive vice president Mike Eskew says about UPS, the world's largest
express carrier. "Our European business grew 30 percent in the first
quarter." Eskew, who handles strategic planning for the company, and other
top UPS executives were in London to tell their story to European investors.
At some point, the company (UPS ) might consider listing its New York shares
in London, the executives said. Such a move comes as competitor DHL ponders
an initial public offering for its online operations. The biggest
international competitors for UPS include DHL, a 31-year-old company, and
Federal Express (FDX ). Other competitors, in Europe anyway, include the
local post, like Deutsche Post in Germany. Both UPS and DHL are marking
Europe for growth. DHL has raised 600 million pounds ($900 million) for
expansion against such deep-pocketed competitors as Federal Express (FDX
UPS is fresh off a successful IPO in the United States in November. At the
time, it was the largest offering ever by an American company. UPS has more
than $6 billion of working capital. At a price of about 60, UPS stock on the
New York Stock Exchange trades at a large premium to the stock of Federal
Express, on a price-earnings basis. Both stocks have benefited from a flow
of investors' money into transportation stocks and other non-Internet
industries. Eskew says UPS can't afford to rest on its laurels, especially
in Europe, where the United Parcel brand is not as well known as Federal
Express, DHL and other services. "We don't have the same density in Europe
as we do in the United States," Eskew told me. "But we feel we can reach
places and move things faster on the ground and in the air." On the Internet
front, UPS has an electronic bill payment and presentment system. The
company spends $1 billion a year on technology. "We think Internet commerce
if a big growth pattern for us. We think b-to-b (business-to-business) is
going to be big in Europe." A British unit, UPS Global Trade Finance, will
launch in June, Eskew said. UPS, to help build awareness among consumers and
corporate customers, is setting up retail shops in Europe, much as it has in
the United States. Several already are open in Paris and London
Monday May 8, 9:16 am Eastern Time
Forbes.com

FedEx, UPS Launch Dueling Arms Dubbed ELogistics
By Penelope Patsuris
The shipping giants are at it again. Within weeks of each other, they've
announced new e-commerce fulfillment strategies, and they're both called
eLogistics. The competing companies have a long history of piggybacking each
other's announcements--sometimes within a matter of hours--with similar
sounding news.
Last week Federal Express (NYSE: FDX) which has $17.8 billion in sales,
announced that it will roll its pre-existing logistics division into a new
eLogistics subsidiary. A month ago, when United Parcel Service announced its
e-Ventures incubation arm, the $28 billion company revealed that its first
project will be a company called eLogistics. The new UPS eLogistics unit,
like the FedEx project, will provide both physical and technical fulfillment
services. There was an earlier and now defunct UPS project
called eLogistics.net, which aimed to be an application service provider for
supply-chain management software.
``All this does is commodify the eLogistics name so it won't relate to
either brand,'' says John Fontanella, an analyst at AMR Research. ``This
makes both projects sound more like marketing ploys than tangible
services.''
Behind the marketing spin, there are substantial corporate efforts to rework
the companies' images from shipping specialists to e-commerce supply-chain
experts. ``We're going to see lots more announcements coming out, trying to
change people's perceptions,'' says Fontanella. FedEx and UPS see tremendous
opportunity in the challenges between the time an order is placed and when
it lands on either a consumer's doorstep or a company's shipping dock.
While a new supply-chain operation creates a new revenue stream in of
itself, it's also an effective way to lock in more of the corporate-shipping
market that both are vying for. Companies may be more inclined to choose a
shipper that also offers supply-chain management, and once they hand those
mission-critical operations over to a third party, they won't easily switch
providers.

UPS opens online shipping tools shop
By Greg Sandoval
Staff Writer, CNET News.com
May 2, 2000, 12:15 p.m. PT

E-commerce shipping giant United Parcel Service today unveiled a new site
that consolidates its Web-based shipping tools.
The new store, dubbed Brown & Brown, will cater to businesses and will be a
display area for shipping products and customer service tools, such as its
tracking, address validation and service area mapping functions. Brown &
Brown  will also sell collectable models of UPS trucks and aircraft that the
93-year-old
firm has used to transport packages